Market Strategy
Lecture 1: Microeconomics and Biz Strategy
References: Pindyck&Rubinfeld. Chap.1
What are the firm’s important functions and strategies ?
1. Selling need to know consumers purchasing behavior
for example, what if the price increases: price elasticity of demand marketing/product positioning strategies
Topics 3-5 lectures
2. Production Supply function/producers output decision how to produce?
Firms output decision: Short run vs LR
For example, should the firm continue producing even though loss?
Topic 6.
3. Managerial Operation organisation aspect of the firm
Institutional setting within which diverse entities interact and come into equilibrium
- Topics 11-12.
4. Market equilibrium changing biz environment
- Industry analysis: strategic groups/the five forces model
- Industry structure and firms behaviour
- Topic 2, 7 - .
5. Information implications to managerial operation/selling
- for example, what if there is asymmetric infor b/ owners and managers or
- b/ sellers and buyers
- Topics 11-12.
6. Market structure and rivalry - various oligopoly firms behaviours - Topics 9-10.
Linking Biz Strategy and Microeconomics: Some cases
1. How to respond ____consumers________ behavior
Cf. Leather Jacket industry vs. environmental protection, Accommodation cost in GC vs. terrorism
2. Market __positioning______ strategy
Cf. Volvo’s strategy focusing on safety in motor vehicle industry
3. _____Price__ competition
Cf. Quantas vs Virgin Blue’s competition
4. ___Cost____of production/ R&D investment
Cf. Dell company’s introduction of just-in-time delivery system to reduce inventory loading.
5. __Business type_______ strategy
Cf. Foreign direct investment vs joint venture; internal production vs outsourcing
6. Corporate _____governance______
Cf. Some argue that ‘crony capitalism’ caused the Asian crisis in 1997; Collapse of HIH insurance co. in 2001
7.
References: Pindyck&Rubinfeld. Chap.1
What are the firm’s important functions and strategies ?
1. Selling need to know consumers purchasing behavior
for example, what if the price increases: price elasticity of demand marketing/product positioning strategies
Topics 3-5 lectures
2. Production Supply function/producers output decision how to produce?
Firms output decision: Short run vs LR
For example, should the firm continue producing even though loss?
Topic 6.
3. Managerial Operation organisation aspect of the firm
Institutional setting within which diverse entities interact and come into equilibrium
- Topics 11-12.
4. Market equilibrium changing biz environment
- Industry analysis: strategic groups/the five forces model
- Industry structure and firms behaviour
- Topic 2, 7 - .
5. Information implications to managerial operation/selling
- for example, what if there is asymmetric infor b/ owners and managers or
- b/ sellers and buyers
- Topics 11-12.
6. Market structure and rivalry - various oligopoly firms behaviours - Topics 9-10.
Linking Biz Strategy and Microeconomics: Some cases
1. How to respond ____consumers________ behavior
Cf. Leather Jacket industry vs. environmental protection, Accommodation cost in GC vs. terrorism
2. Market __positioning______ strategy
Cf. Volvo’s strategy focusing on safety in motor vehicle industry
3. _____Price__ competition
Cf. Quantas vs Virgin Blue’s competition
4. ___Cost____of production/ R&D investment
Cf. Dell company’s introduction of just-in-time delivery system to reduce inventory loading.
5. __Business type_______ strategy
Cf. Foreign direct investment vs joint venture; internal production vs outsourcing
6. Corporate _____governance______
Cf. Some argue that ‘crony capitalism’ caused the Asian crisis in 1997; Collapse of HIH insurance co. in 2001
7.